News

13 October 2016

Q3 2016 and 9M 2016 NLMK Group Trading update

NLMK Group is pleased to announce its Q3 2016 and 9M 2016 operating results.

Q3 2016 NLMK Group sales increased 7% qoq to 4.2 m t. Steel output was 4.0 m t (-4% qoq). In 9M 2016 Group steel output and sales increased by 2% yoy to a record high 12.3 m t. 9M 2016 capacity utilization rate was up by 1 p.p. to 95%.

Q3 2016 highlights:

  • Group sales grew by 7% qoq to a record high 4.2 m t (+2% yoy).
  • Sales of finished steel increased by 8% qoq to 2.8 m t (+1% yoy); the share of finished rolled products in total sales was 66% (+1 p.p. qoq and -1 p.p. yoy).
  • Crude steel output was 4.0 m t (-4% qoq and -1% yoy) due mainly to planned repairs at the Lipetsk site.
  • Market shares in NLMK Group total sales:
    • share of product sales by Group companies in regions where products are manufactured (hereinafter referred to as ‘local markets’) totaled 66% (-1 p.p. qoq and -2 p.p. yoy); sales in Russia increased by 28% qoq
    • share of sales to third parties (except NBH) in markets external to countries where products are manufactured (hereinafter referred to as ‘external markets’) totaled 34% (+1 p.p. qoq and +2 p.p. yoy).

9M 2016 highlights:

  • Crude steel output increased by 2% yoy to 12.3 m t, driven by an 8% increase yoy in NLMK Russia Long Products output and an 18% increase yoy in NLMK Indiana output.
  • NLMK Group capacity utilization rates were up by 1 p.p. to 95%.
  • NLMK Group sales grew to 12.3 m t (+2% yoy).